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Tuesday, July 21

SLM reports quarterly net loss of $123 mln(5:38 pm ET)
SAN FRANCISCO (MarketWatch) -- SLM Corp. (SLM: news, chart, profile) late Tuesday reported a second-quarter net loss of $123 million, or 23 cents a share, as the student loan giant recorded $484 million in unrealized losses on derivatives and hedging activities while setting aside $278 million in provisions for loan losses. A year earlier, SLM said it generated net income of $266 million, or 50 cents a share. SLM also reports "core" results, which don't adhere to generally accepted accounting principles. On that basis, SLM said it made a second-quarter profit of $170 million, or 31 cents a share, versus a profit of $156 million, or 27 cents a share, in the year-ago quarter. SLM shares fell 2.8% to $9.24 in after-hours action.

Nabors Industries swings to a loss (5:32 pm ET)
SAN FRANCISCO (MarketWatch) -- Oil drilling company Nabors Industries Ltd. (NBR: news, chart, profile) reported late Tuesday a second-quarter net loss of $193 million, or 68 cents a share. A year ago it posted net income of $176 million, or 60 cents a share. Excluding one-time items, Nabors' adjusted earnings totaled $91 million, or 32 cents a share. Revenue for the three months ended June 30 fell 33% to $878 million as drilling activity fell sharply on lower energy prices. Analysts polled by FactSet Research had predicted the Hamilton, Bermuda-registered company would report earnings of 27 cents a share on $921 million in revenue. The company warned operating income in the U.S. could fall another 50% in the third quarter while income from operations abroad was poised for second-half growth. Nabors shares fell 13 cents ahead of the report to close at $17.16. The stock is down 60% over the past 12 months.

Linear Technology quarterly profit down sharply(5:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Linear Technology (LLTC: news, chart, profile) late Tuesday reported a fourth-quarter net income of $56.2 million, or 25 cents a share, down from $103.1 million, or 46 cents a share, a year earlier. Revenue decreased to $208 million from $307.1 million, the integrated circuit maker said. Analysts surveyed by FactSet Research had forecast earnings of 22 cents a share on revenue of $204 million. "Looking ahead to the September quarter, there is continued uncertainty in the marketplace and our customers continue to be cautious with their ordering patterns," the company said in a statment. The company expects revenue to rise 2% to 5% in the first quarter from the fourth quarter.

QLogic quarterly profit down nearly 50%(4:45 pm ET)
SAN FRANCISCO (MarketWatch) -- QLogic Corp. (QLGC: news, chart, profile) late Tuesday reported its fiscal first-quarter net income fell to $15 million, or 13 cents a share, compared with a net income of $31.6 million, or 24 cents a share, in the same period last year. On an adjusted basis, the networking equipment company would have earned $23.9 million, or 20 cents a share. Net revenue decreased to $122.8 million from $168.4 million a year earlier. Analysts had forecast earnings of 18 cents a share on revenue of $125.1 million, according to consensus estimates from FactSet Research.

Apple earnings jump 15% for third fiscal quarter(4:40 pm ET)
SAN FRANCISCO (MarketWatch) -- Apple Inc. (AAPL: news, chart, profile) on Tuesday reported a fiscal third-quarter profit of $1.23 billion, or $1.35 a share, on revenue of $8.34 billion. During the same period a year ago, Apple earned $1.07 billion, or $1.19 a share, on $7.46 billion in sales. The results beat the estimates of analysts surveyed by Thomson Reuters, who forecast Apple to earn $1.17 a share on revenue of $8.16 billion. Apple said its results were led by sales of 2.6 million Mac computers and 5.2 million iPhones. For its fourth quarter, Apple expects to earn $1.18 to $1.23 a share on revenue in a range of $8.7 billion to $8.9 billion.

C.H. Robinson posts higher profit; sales dip(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- C.H. Robinson Worldwide (CHRW: news, chart, profile) on Tuesday reported a second-quarter profit of $92 million, or 54 cents a share, up slightly from $90 million, or 52 cents a share, a year ago. Revenue fell 17% to $1.93 billion due primarily to lower volumes and fuel prices. Analysts polled by FactSet Research had expected the Minneapolis-based trucking company to post a profit, on average, of 52 cents a share and sales of $1.98 billion.

Nabors Industries swings to a second-quarter loss(4:33 pm ET)
SAN FRANCISCO (MarketWatch) -- Nabors Industries Ltd. (NBR: news, chart, profile) said late Tuesday that it swung to a second-quarter loss of $193 million, or 68 cents a share, from a profit of $176.4 million, or 60 cents a share, in the year-ago period. Excluding one-time items, the company would have reported a profit of 32 cents a share in the latest quarter. Revenue decreased to $878 million from $1.3 billion last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 27 cents a share on revenue of $920.8 million.

Boston Properties funds from operations $166.7 mln(4:25 pm ET)
SAN FRANCISCO (MarketWatch) -- Boston Properties (BXP: news, chart, profile) said late Tuesday that second-quarter funds from operations came in at $166.7 million, or $1.32 a share. This compares to funds from operations of $141 million, or $1.16 a share, for the quarter ended June 30, 2008. Net income available to common shareholders was $67.2 million, or 53 cents a share, in the latest quarter, the real estate investment trust said.

Pactiv posts higher profit, raises outlook(4:26 pm ET)
SAN FRANCISCO (MarketWatch) -- Pactiv (PTV: news, chart, profile) on Tuesday reported a second-quarter profit of $96 million, or 73 cents a share, up from $61 million, or 46 cents a share, a year ago. Sales fell to $901 million from $951 million. Analysts polled by FactSet Research had expected a profit, on average, of 56 cents a share and sales of $855 million. The company, whose product line includes Hefty brand trash bags, raised its full-year forecast to a range of $2.37 to $2.45 a share. Wall Street previously forecast 2009 earnings of $2.22 a share.

VF Corp. profit falls 27% (4:24 pm ET)
SAN FRANCISCO (MarketWatch) -- Apparel giant VF Corp. (VFC: news, chart, profile) , whose brands include Wrangler, Lee and North Face, reported late Tuesday second-quarter net income fell to $75.5 million, or 68 cents a share, from $104 million, or 94 cents, a year ago. Revenue for the three months ended June 30 fell 11% to $1.49 billion. Analysts polled by FactSet Research had predicted the Greensboro, N.C.-based company would earn 57 cents a share on $1.53 billion in revenue. The company said it expects to earn between $4.70 and $5 a share for the full year, in line with analysts' expectations of $4.84. VF Corp. shares closed ahead of the report with a 1% loss at $60.59. The stock is down nearly 17% over the past 12 months.

Yahoo bucks expectations to post profit growth(4:21 pm ET)
SAN FRANCISCO (MarketWatch) - Yahoo Inc. (YHOO: news, chart, profile) said Tuesday its second-quarter net income rose to $143 million, or 10 cents a share, from $132.4 million, or 9 cents a share in the same period a year earlier. Net revenue in the period ended in June fell to $1.14 billion from $1.35 billion, the Sunnyvale, Calif.-based Internet giant said. Wall Street analysts on average had been expecting Yahoo to post second-quarter earnings of 8 cents a share and $1.14 billion in net revenue, according to data from Thomson Reuters.

Gilead quarterly profit rises to 61c vs. 45c(4:17 pm ET)
SAN FRANCISCO (MarketWatch) -- Gilead Sciences Inc. (GILD: news, chart, profile) said late Tuesday that its second-quarter profit increased to $571,398, or 61 cents a share, from $434,783, or 45 cents a share, in the year-ago period. Revenue increased to $1.65 billion from $1.29 billion last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 61 cents a share on revenue of $1.59 billion.

Starbucks swings to profit(4:14 pm ET)
SAN FRANCISCO (MarketWatch) -- Starbucks (SBUX: news, chart, profile) late Tuesday reported a third-fiscal-quarter profit of $151.5 million, or 20 cents a share. A year ago, the coffee retailer lost $6.7 million, or 1 cent a share, due to charges to cover store closures and workforce cuts. Sales fell to $2.4 billion in the recently completed quarter from a year-earlier $2.6 billion. Analysts had pegged Starbucks to earn 19 cents a share on sales of $2.37 billion, according to FactSet Research. Traffic at Starbucks stores has improved from earlier this year. Sales at stores open a year or more fell 5% during the quarter, compared with an 8% decline for quarter ended March 29. In addition, the Seattle-based company said it plans to cut $550 million in annual costs, up from its previous savings target of $500 million. Starbucks shares have steamed 55% higher this year. The stock closed Tuesday at $14.69.

Stryker posts flat per-share profit, sales dip(4:09 pm ET)
SAN FRANCISCO (MarketWatch) -- Stryker Corp. (SYK: news, chart, profile) on Tuesday reported a second-quarter profit of $291 million, or 73 cents a share, down from $306 million, or 73 cents a share, a year earlier. Sales came in at $1.63 billion compared with $1.71 billion a year ago. Analysts polled by FactSet Research had expected a profit, on average, of 72 cents a share and revenue of $1.65 billion. The medical equipment maker said it expects to post a profit of $2.90 to $3.10 a share for the full year. Wall Street previously forecast a 2009 profit of $2.96 a share.

Seagate swings to loss on restructuring charges(4:09 pm ET)
SAN FRANCISCO (MarketWatch) -- Seagate Technology said Tuesday that it swung to a net loss for the fourth fiscal quarter on a drop in sales as well as large restructuring charges. The maker of hard disk drives and other data storage products (STX: news, chart, profile) reported a net loss of $81 million, or 16 cents a share, for the period ended July 3. This compares to earnings of $160 million, or 32 cents a share, for the same period last year. The results include charges of $106 million, or approximately 22 cents per share, from write-offs as well as restructuring. Revenue fell 19% to $2.35 billion for the quarter. Analysts were expecting a net loss of 10 cents a share on revenue of $2.25 billion, according to consensus estimates from Thomson Reuters.

Banking stocks feel pressure from Comerica, Region(9:43 am ET)
NEW YORK (MarketWatch) -- U.S. financial stocks fell Tuesday morning with shares of Comerica Inc. (CMA: news, chart, profile) and Regions Financial Corp. (RF: news, chart, profile) adding to the selling pressure after their second-quarter earnings releases showed the firms are banking that credit losses will remain on the rise. The sector's benchmark exchange-traded fund, Financial Select Sector SPDR Fund (XLF: news, chart, profile) , was down 0.7% to 12.16. Shares of Comerica and Regions Financial were off 7.1% and nearly 11%, respectively.

McClatchy CEO: 'We won't violate covenants in '09'(9:39 am ET)
CHICAGO (MarketWatch) -- McClatchy Co. (MNI: news, chart, profile) Chief Executive Gary Pruitt said Tuesday that the company will not violate its bank covenants this year, even if its advertising sales don't improve in 2009. Pruitt's remarks came in a statement issued in conjunction with the newspaper publisher's second quarter earnings report. There had been increasing speculation that the company could go into default and possible bankruptcy this year. In the second quarter, McClatchy earned $42.2 million, or 50 cents a share, compared with a profit of $20 million, or 24 cents, in the same quarter a year ago. Excluding discontinued operations and special items, McClatchy would have earned $17.3 million, or 21 cents a share, in the latest three months. Revenue plunged 25% to $365.3 million, reflecting a 30% decline in ad revenues. Analysts polled by Thomson Reuters were expecting revenue of $369 million.

Tech stocks get off to mixed early start(9:35 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed early performance Tuesday as the market awaited earnings reports from Apple Inc. (AAPL: news, chart, profile) , Yahoo Inc. (YHOO: news, chart, profile) and Advanced Micro Devices Inc. (AMD: news, chart, profile) after the closing bell. Texas Instruments Inc. (TXN: news, chart, profile) shares fell 40 cents to $23.22 after the chipmaker reported a drop in its second-quarter earnings late Monday. The tech-heavy Nasdaq Composite Index ($COMPQ: news, chart, profile) rose 4.3 points to 1,913.

UAL posts profit on fuel hedge gains, cost cuts(9:09 am ET)
CHICAGO (MarketWatch) -- UAL Corp. (UAUA: news, chart, profile) said Tuesday that it swung to a second-quarter profit on fuel hedge gains and a 52% reduction in costs. The parent of United Airlines said it earned $28 million, or 19 cents a share, in the latest three months. In the same quarter a year ago, it posted a loss of $2.74 billion, or $21.57 a share. Excluding items, UAL said it would have lost $323 million, or $2.23 a share, in the second quarter of 2009. Revenue fell 25% to $4.02 billion. Analysts surveyed by Thomson Reuters were expecting an adjusted loss of $2.61 a share on revenue of $4.04 billion. Operating expenses fell to $3.91 billion from $8.1 billion. UAL expects to cut international capacity by 7% during the last four months of 2009 to "better match supply with demand." The company also now expects cost-per-available seat mile to be in a range from down 0.5% to up 0.5% for the full year 2009, excluding fuel, profit sharing and other charges. The new outlook represents a $150 million improvement compared with the forecast UAL issued in April.

Sherwin-Williams posts lower quarterly profit(9:09 am ET)
NEW YORK (MarketWatch) -- Sherwin-Williams Co. (SHW: news, chart, profile) said Tuesday that its second-quarter earnings were $158 million, or $1.35 a share, compared to $172 million, or $1.45 a share, in the same period a year ago. Sales were $1.95 billion compared to the year-earlier $2.23 billion. Analysts polled by FactSet Research estimated, on average, earnings of $1.32 a share and sales of $1.99 billion. The Cleveland, Ohio-based paint company expects earnings of $1.15 to $1.45 a share for the third quarter and $3.30 to $3.80 for the full year.

AK Steel swings to second-quarter loss(8:42 am ET)
NEW YORK (MarketWatch) -- AK Steel (AKS: news, chart, profile) said Tuesday that it lost $47.2 million, or 43 cents a share, in the second quarter, compared to a profit of $145.2 million, or $1.29 a share, in the year-earlier period. Analysts polled by FactSet Research estimated, on average, a loss of 51 cents a share. Net sales fell to $794 million from $2.24 billion. For the third quarter, the West Chester, Ohio-based specialty steel maker expects to roughly break even in operating profit.

Hudson City Bancorp reports profit rise(8:22 am ET)
NEW YORK (MarketWatch) -- Hudson City Bancorp Inc. (HCBK: news, chart, profile) said Tuesday that its second-quarter profit rose 15.5% to $127.9 million, or 26 cents a share, from $110.7 million, or 22 cents a share, in the year-ago period. Analysts surveyed by FactSet Research had expected, on average, earnings per share of 26 cents. The Paramus, N.J.,-based parent of Hudson City Savings Bank also declared a quarterly dividend of 15 cents a share, up from 11 cents a share in the second quarter of 2008.

Precision Castparts net income shrinks 12.8%(8:16 am ET)
NEW YORK (MarketWatch) -- Precision Castparts Corp. (PCP: news, chart, profile) said Tuesday first-quarter net income fell to $240.4 million, or $1.70 a share, from $275.8 million, or $1.96 a share in the year-ago period. The Portland, Ore.-based industrial firm said sales dropped to $1.38 billion from $1.81 billion. Wall Street analysts expected earnings of $1.78 a share and sales of $1.64 billion, according to a survey by FactSet Research. The company said it's seeing further signs of a bottom in the economy and that it expects a better second half of the year. "In line with what we stated at the end of last quarter, inventory destocking across our aerospace operations was going to impact sales both in the first and second quarter," the company said. "As we look beyond Q2, this situation stabilizes."

Peabody Energy profit falls (8:17 am ET)
NEW YORK (MarketWatch) -- Peabody Energy Corp. (BTU: news, chart, profile) said on Tuesday that its net income available to common shareholders was $79.2 million, or 29 cents a share in the second quarter, compared to $233 million, or 85 cents a share a year ago. Revenue in the quarter fell to $1.34 billion, from $1.53 billion a year ago. The company reported adjusted earnings per share of 49 cents, versus 50 cents a year ago. Analysts polled by Thomson Reuters had expected the company to earn 49 cents a share.

Forest Lab earnings rise to 87 cents a share(8:13 am ET)
NEW YORK (MarketWatch) -- Forest Laboratories Inc. (FRX: news, chart, profile) said Tuesday that fiscal first-quarter earnings were $263 million, or 87 cents a share, compared to $243 million, or 79 cents a share in the same period a year ago. Revenue grew 4.3% to $1 billion from $967 million. Analysts polled by FactSet Research estimated, on average, earnings per share of 82 cents and sales of $1 billion.

Freeport-McMoRan net income down 38%(8:08 am ET)
NEW YORK (MarketWatch) -- Freeport-McMoRan Copper & Gold Inc. (FCX: news, chart, profile) said Tuesday its second-quarter net income fell to $588 million, or $1.38 a share from $947 million, or $2.25 a share in the year-ago period. Revenue fell to $3.68 billion from $5.44 billion. Wall Street analysts expected earnings of 63 cents a share on revenue of $3.35 billion, according to a survey by FactSet Research. Looking out at the balance of 2009, the Phoenix based mining giant expects sales from mines of 3.9 billion pounds of copper, 2.4 million ounces of gold and 56 million pounds of molybdenum for the year. For the third quarter, it expects 910 million pounds of copper, 550 thousand ounces of gold and 15 million pounds of molybdenum.

Regions swings to loss (7:55 am ET)
NEW YORK (MarketWatch) -- Regions Financial Corp. (RF: news, chart, profile) on Tuesday posted a loss of $188 million, or 28 cents a share, compared with a year-earlier profit of $206 million, or 30 cents a share. A survey of analysts by Thomson Reuters predicted a 22-cent loss. Loan-loss provisions surged to $912 million from $309 million a year earlier.

State Street swings to loss on conduit charges(7:52 am ET)
BOSTON (MarketWatch) -- State Street Corp. (STT: news, chart, profile) on Tuesday reported a second-quarter net loss of $3.31 billion, or $7.12 a share, compared with profit of $548 million, or $1.35 a share, in the year-ago period. The Boston-based financial-services giant said the latest quarter's results included a loss of $7.91 a share to move troubled investment vehicles known as conduits that issued asset-backed commercial paper onto its balance sheet. The company also booked a charge of 23 cents a share related to paying back funds it borrowed under the government's financial bailout.

Caterpillar raises 2009 profit outlook (7:47 am ET)
NEW YORK (MarketWatch) -- Caterpillar Inc. [s; c] on Tuesday raised its profit outlook for 2009 to a range of 40 cents a share to $1.50 a share, including redundancy costs. Excluding redundancy costs, profit is forecast to be between $1.15 and $2.25 per share. The firm also narrowed the range of its internal sales and revenue expectations to $32 to $36 billion. "As tough as this year has been, the improved profit outlook is a tangible sign of what happens when the entire team is pulling in the same direction and deploying the trough strategy we put in place over the past four years," Chief Executive Officer Jim Owens, said in a press release.

Lockheed Martin net down 17% on pension expenses(7:44 am ET)
LONDON (MarketWatch) -- Defense contractor Lockheed Martin (LMT: news, chart, profile) said its second-quarter net income fell 17% to $734 million, or $1.88 a share, hurt by higher pension expenses. Sales edged up to $11.24 billion from $11.04 billion, helped by increased combat aircraft sales. Analysts polled by FactSet had forecast earnings of $1.81 a share on sales of $11.16 billion. For the year, the company is sticking to its view of earnings per share between $7.15 and $7.35 and revenue between $44.7 billion and $45.7 billion, though its pretax earnings view was reduced.